Godfreys Group shares jumped nearly 43% to 30 cents yesterday after investors noted the mop up bid (a ‘charity offer’?) if the embattled company’s biggest shareholder, John Johnson, the 99 year old co-founder of the vacuum cleaner retailer.
The board of ailing retailer Godfreys wants to get an independent valuation of the company and has urged shareholders to take no action on the takeover bid at 32 cents a share, according to a statement form the company yesterday.
The bid was revealed at 5.17pm on Monday, well after the ASX had closed for the day.
A successful bid by Mr Johnston’s Arcade Finance which owns 28% of Godfrey’s is a forgone conclusion given hedge funds or others would find it difficult to mount any sort of counter offer or hold out for a higher price.
For Johnson it is a clever move – Godfrey’s floated several years ago at $2.75 and his $32 cents a share offer represents a very good example of the old investment adage of selling buy and buying low. he turns 100 in Juky. The bid is expected to open around April 24 and close in May.
There is no expectation other than a recommendation from the Godfrey’s board.
